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Polycom, Cisco At Risk From Vidyo, Says Morgan Keegan

June 9, 2011 | William Zimmerman
Thumbnail image for Vidyo_Panorama_Multidevice.jpg

By Tiernan Ray, via Tech Trader Daily

So-called room-based video conferencing systems, where high-definition feeds are displayed in life-size format between participants, may be at risk, writes Morgan Keegan analyst Tavis McCourt in a note to clients this afternoon.

Incumbent vendors such as Polycom (PLCM) and Cisco Systems (CSCO), which have sold relatively high-priced room video conferencing for a while now, could receive meaningful competition from venture-backed Vidyo of Hackensack, New Jersey, he thinks.

Vidyo's video encode/decode technology, called scalable video coding, or SVC, can produce a live feed on 9 television screens at a resolution of 1080p, and 60 frames per second, for about $60,000, writes McCourt. That compares to $300,000 to $500,000 for comparable systems from Cisco and Polycom, he writes. And those systems only offer 1080p resolution at 30 frames per second, not 60. The only difference is that the Vidyo screens are not assembled to look like one seamless conference table.







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